Mapping the elasticity of economic growth to financial development: A 1980 - 2012 empirical analysis for 100 countries

This research analyzes the impact of financial development on economic growth for a set of 100 countries. It applies cointegration methods taking into account country heterogeneities, which have not been studied up to now at a detailed level. Financial development is measured by a broad index or on...

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Autores principales: Zarzosa Valdivia, Fernando, Ayala, Simón Lisandro
Formato: conferenceObject
Lenguaje:Inglés
Publicado: Asociación Argentina de Economía Política 2021
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Acceso en línea:http://hdl.handle.net/11086/19426
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Sumario:This research analyzes the impact of financial development on economic growth for a set of 100 countries. It applies cointegration methods taking into account country heterogeneities, which have not been studied up to now at a detailed level. Financial development is measured by a broad index or one of its three dimensions (deepness, accessibility and efficiency). Mapping the estimated elasticities of economic growth to financial development, deepness and accessibility exhibit, graphically, a bellshaped quadratic form. The evidence of strong country heterogeneity suggests that policy prescriptions should take into account the idiosyncratic factors of each country.